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Oil up on production cut prospect

Business Materials 3 December 2008 11:57 (UTC +04:00)

Oil prices have risen on Wednesday after falling more than $100 from July's peaks, but upcoming oil demand data may limit the growth, reported CNN.

US light, sweet crude gained 88 cents to $47.84 a barrel. Brent crude rose 56 cents to $46.00.

Qatar said Opec would cut output at its meeting on 17 December after not doing so last weekend.

Separately, the oil cartel's head said oil producers needed oil to cost at least $70 to $80 a barrel.

"We don't want to impose a particular price on the market but it must be at least $75, $80 or more so producing countries have enough income to meet the needs of their citizens, investments to expand, and to carry out oil projects," the oil cartel's secretary-general Abdullah al-Badri told Iranian newspaper Hamshahri.

Qatar's oil minister Abdullah al-Attiyah told journalist he was sure Opec would cut oil production at its meeting in Algeria.

"I don't know by how much. We will discuss it there," he said.

US weekly stock data, which will be published later on Wednesday, could show another rise in crude stocks, putting downward pressure on oil prices.

"A the moment, weakness in demand is the key thing affecting prices," said David Moore at the Commonwealth Bank of Australia.

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